Electric Rickshaws will be introduced in Pakistan by a Japanese company. CKD and CBU units will be imported but the duty tariffs on imports are impeding the competition prospects of the company. The company has also requested from the government to remove duty tariffs on the import of electric rickshaws.
Steps are being taken to address the tax-related issues of Japanese investors; also the recommendation of the board of investment for refund payments is also being looked upon as the delays have occurred in the process.
Investors are seeking a refund of advance taxes on imports and also exemption certificate for advance tax as well as withholding tax.
The minimum tax is charged on new investments and reinvestments which according to the Japanese investors should be abolished.
Taxes on undistributed profits should also be finished that holds back the investment.
Earlier Board of investment holds a meeting with Japanese investors to address their issues. In the meeting representatives of major Japanese companies, Japanese consulate, Pakistan-Japan business Forum, Japan External trade organization and JICA were present.
The issues being faced also included that apart from Bridgestone, Dunlop and Yokohama other tires are also being marketed in Pakistan and they should not be categorized in luxury goods, as it will increase the burden upon consumers.
